United States v. Little Lake Misere Land Co., 412 U.S. 580 (1973)

8/17/2019 United States v. Little Lake Misere Land Co., 412 U.S. 580 (1973)

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412 U.S. 580

93 S.Ct. 2389

37 L.Ed.2d 187

UNITED STATES, Petitioner,

v.LITTLE LAKE MISERE LAND COMPANY, INC., et al.

No. 71—1459.

Argued Jan. 15 and 16, 1973.

Decided June 18, 1973.

Syllabus.

Pursuant to the Migratory Bird Conservation Act, the United States

acquired land parcels in Louisiana for a wildlife refuge, one by deed in

1937, the other by condemnation in 1939. Mineral rights were reserved to

the respondent former owners for a period of 10 years, subject to

extension if certain detailed exploration and production conditions were

met, after which complete fee title was to vest in the United States. The10-year period expired without the extension conditions being met.

Respondents continued to claim the mineral rights, relying on Louisiana

Act 315 of 1940, which, as applied retroactively, provides that mineral

rights reserved in land conveyances to the United States shall be

'imprescriptible,' thus, in effect, extending indefinitely the former owners'

mineral reservations. The Government brought this suit to quiet title. The

District Court entered summary judgment for the respondents, concluding

that Leiter Minerals, Inc. v. United States, 5 Cir., 329 F.2d 85, wasdispositive of the issues, notwithstanding that that judgment had been

vacated by this Court and the case remanded with instructions to dismiss

the complaint as moot. The Court of Appeals affirmed. Held: Under

settled principles governing the choice of law by federal courts,

Louisiana's Act 315 of 1940 does not apply to the mineral reservations

agreed to by the parties in 1937 and 1939. Pp. 590 593.

(a) Here, where the land acquisition to which the United States is a partyarises from and bears heavily upon a federal regulatory program, the

choice of law task is a federal one for federal courts, as defined by

Clearfield Trust Co. v. United States, 318 U.S. 363, 63 S.Ct. 573, 87


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L.Ed. 838. Pp. 590—593.

(b) Absence of a provision dealing with choice of law in the Migratory

Bird Conservation Act does not limit the reach of federal law, as

interstitial federal lawmaking is a basic responsibility of the federal courts.

P. 593.

(c) Even assuming that the established body of state property law should

generally govern federal land acquisitions, Act 315, as retroactively

applied, may not, because in determining the appropriateness of

'borrowing' state law, specific aberrant or hostile state rules do not provide

appropriate standards for federal law. Under Act 315 land acquisitions

explicitly authorized by federal statute are made subject to a rule of

retroactive imprescriptibility, a rule plainly hostile to the United States,

and one that deprives the United States of bargained-for contractual

interests. Pp. 594—593.

(d) To permit state legislation to abrogate the explicit terms of a prior

federal land acquisition would seriously impair federal statutory programs

and the certainty and finality that are indispensable to land transactions.

Pp. 597—599.

(e) Act 315, as applied retroactively, serves no legitimate and important

state interests the fulfillment of which Congress might have contemplatedthrough application of 'borrowed' state law. Pp. 599—602.

(f) In 1937 and 1939, the Government could not anticipate that the

mineral reservations in issue might be characterized, under present

Louisiana law, as indefinite in duration and freely revocable. A late-

crystallizing state law doctrine may not modify the clear and explicit

contractual expectations of the United States. Pp. 602—603.

(g) As it is clear that Act 315 does not apply here, it is not necessary to

choose between 'borrowing' some residual state rule of interpretation or

formulating an independent federal 'common law' rule; neither rule is the

law of Louisiana, yet either rule resolves this dispute in the Government's

favor. Pp. 603—604.

453 F.2d 360, reversed and remanded.

William Bradford Reynolds, Washington, D.C., for petitioner.

Austin W. Lewis, New Orleans, La., for respondents.


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Mr. Chief Justice BURGER delivered the opinion of the Court.

1 We granted the writ in this case to consider whether state law may retroactively

abrogate the terms of written agreements made by the United States when it

acquires land for public purposes explicitly authorized by Congress.

2 The United States initiated this litigation in 1969 in the United States District

Court for the Western District of Louisiana, seeking to quiet title to two

adjacent parcels of land in Cameron Parish, Louisiana, which the Government

had acquired pursuant to the Migratory Bird Conservation Act, 45 Stat. 1222,

16 U.S.C. § 715 et seq., as part of the Lacassine Wildlife Refuge.1 Title to one

parcel was acquired by the United States by purchase on July 23, 1937; to the

other parcel by a judgment of condemnation entered August 30, 1939. Both the

1937 act of sale and the 1939 judgment of condemnation reserved to therespondent Little Lake Misere oil, gas, sulphur, and other minerals for a period

of 10 years from the date of vesting of title in the United States.2 The

reservation was to continue in effect 'as long (after the initial ten-year period) as

oil, gas, sulphur or other mineral is produced . . . or so long thereafter as

(respondents) shall conduct drilling or reworking operations thereon with no

cessation of more than sixty (60) days consecutively until production results;

and, if production results, so long as such mineral is produced.' The deed and

the judgment of condemnation further recited that at the end of 10 years or atthe end of any period after 10 years during which the above conditions had not

been met, 'the right to mine, produce and market said oil, gas, sulphur or other

mineral shall terminate . . . and the complete fee title to said lands shall thereby

become vested in the United States.'

3 The parties stipulated, and the District Court found, that as to both the parcels in

issue here, no drilling, reworking, or other operations were conducted and no

minerals were obtained for a period of more than 10 years following the act of sale and judgment of condemnation, respectively. Thus, under the terms of

these instruments, fee title in the United States ripened as of 1947 and 1949,

respectively—10 years from the dates of creation. In 1955, the United States

issued oil and gas leases applicable to the lands in question.

4 Respondents, however, continued to claim the mineral rights and accordingly

entered various transactions purporting to dispose of those rights. Respondents

relied upon Louisiana Act 315 of 1940, La.Rev.Stat. § 9:5806, subd. A (Supp.

1973), which provides:

5 'When land is ac uired b conventional deed or contract condemnation or


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expropriation proceedings by the United States of America, or any of its

subdivisions or agencies from any person, firm or corporation, and by the act of

acquisition, order or judgment, oil, gas or other minerals or royalties are

reserved, or the land so acquired is by the act of acquisition conveyed subject to

a prior sale or reservation of oil, gas, or other minerals or royalties, still in force

and effect, the rights so reserved or previously sold shall be imprescriptible.'

6 Respondents contended that the 1940 enactment rendered inoperative the

conditions set forth in 1937 and 1939 for the extinguishment of the

reservations. The District Court concluded that the Court of Appeals' prior

decision in Leiter Minerals, Inc. v. United States, 329 F.2d 85 (CA5 1964),

required resolution of this case in favor of respondents, notwithstanding that we

had vacated the Court of Appeals' judgment in Leiter Minerals and remanded

with instructions to dismiss the complaint as moot. 381 U.S. 413, 85 S.Ct.

1575, 14 L.Ed.2d 692 (1965). The Court of Appeals affirmed, for the reasonsstated in its Leiter Minerals holding. It rejected the Government's Contract

Clause and Supremacy Clause objections on the authority of United States v.

Nebo Oil Co., 190 F.2d 1003 (CA5 1951), and further rejected the

Government's argument that Act 315 was unconstitutionally discriminatory

against the United States. The Court of Appeals observed 'that the same

principle applies to acquisitions by the State of Louisiana (La.Rev.Stat. §

9:5806, subd. B), and that the act really does nothing more than place citizens

of Louisiana in the same position as citizens of other states whose land has been purchased or condemned by the United States.' 453 F.2d 360, 362 (1971).

We reverse.

7 * Litigation involving Act 315 began more than a quarter century ago. The

Leiter Minerals case, upon which the Court of Appeals based its decision in this

case, is only the principal holding in the area. The first case to arise involving

Act 315, Whitney Nat. Bank v. Little Creek Oil Co., grew out of a 1932 sale of

mineral rights that specified a 10-year period of prescription. The surface property was conveyed to the United States in 1936, subject to the 1932 mineral

sale, and in 1947 the question arose whether Act 315 of 1940 had the effect of

extending indefinitely the servitude created by the 1932 sale. The Louisiana

Supreme Court held that Act 315 of 1940 was fully applicable to the 1936

transaction—'not because there is anything in the terms of the statute to

indicate that it was intended to have a retroactive application, but because of the

general rule of law established by the jurisprudence of this court that laws of

prescription and those limiting the time within which actions may be broughtare retrospective in their operation.' 212 La. 949, 958, 33 So.2d 693, 696

(1947).3 The court acknowledged the contention that if Act 315 were applied

retroactively, it might be unconstitutional, but dismissed the constitutional issue


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without resolving it for failure to join the United States, a necessary party.

8 Whitney Bank set the stage for the first federal court test of Act 315, as

construed to have retroactive application, in United States v. Nebo Oil Co.,

supra, aff'g, 90 F.Supp. 73 (WD La.1950). There the United States brought suit

against Nebo Oil (the successor to the 1932 mineral purchaser of the (Whitney

Bank case) to secure a declaratory judgment that the United States owned theacreage it purchased in 1936 subject only to the 10-year rule of prescription

specified at the time of the original 1932 sale of mineral rights. But the Court of

Appeals upheld the application of Act 315 to the previously consummated

transaction, stressing that reversionary estates are unknown in Louisiana law

and that, as a result, the United States in 1936 took 'nothing more than a mere

expectation, or hope, based upon an anticipated continuance of the applicable

general laws . . .. (This) mere expectancy . . . cannot be regarded as a vested

right protected by the Constitution.' 190 F.2d at 1008—1009.4

9 In the Leiter Minerals litigation, retrospective application of Act 315 to a

detailed, conditional mineral reservation was in issue for the first time. Leiter

Minerals, Inc., succeeded to the interests of the Leiter family, which in 1938

had sold a substantial tract in Placquemines Parish, Louisiana, to the United

States. Leiter's federal sale was subject to a mineral reservation in Leiter's favor,

providing in essence that the reservation would be extended for five years

beyond its initial 10-year duration whenever commercially advantageousmineral extraction had occurred during 50 days of a defined period.5 At the

expiration of any period during which the conditions for extension had not been

met, the right to mine would terminate 'and complete fee in the land becomes

vested in the United States.' The mineral reservation expired by its own terms;

the Government granted a valuable mineral lease; and Leiter invoked Act 315

to support its claim to a servitude of continuing duration.

10 After a false start in the Louisiana courts, the ensuing litigation found its way

into a federal forum. The United States used in the Eastern District of Louisiana

to quiet title and to enjoin the concurrent state court proceedings initiated by

Leiter. The Court of Appeals affirmed an injunction granted by the District

Court,6 and this Court agreed, but remanded to the Court of Appeals with

instructions to secure an authoritative construction of Act 315 before

proceeding to the difficult constitutional issues in the case. Leiter Minerals, Inc.

v. United States, 352 U.S. 220, 229, 77 S.Ct. 287, 292, 1 L.Ed.2d 267 (1957).7

11 Adhering to the terms of the remand, Leiter sought a declaratory judgment in

the Louisiana courts, which expressed some continuing doubt over the breadth

of their responsibility for resolving the Leiter controversy on its own facts.


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Ultimately, the Louisiana Supreme Court took jurisdiction of the case and

rendered a declaratory judgment limited to general elucidation of Act 315,

without applying the Act to the specific terms of the Leiter mineral reservation

itself. Leiter Minerals, Inc. v. California Co., 241 La. 915, 132 So.2d 845

(1961). The Louisiana Supreme Court expressed its conclusions as follows:

12 'First, that if the reservation in the Leiter deed is construed as establishing amineral servitude for a definite, fixed, and specified time which has elapsed,

then Act 315 of 1940 is not applicable and cannot be constitutionally applied;

and second, that if the reservation is construed as not establishing a servitude

for a fixed, definite and certain time, and if it is decided that the provisions of

the reservation show that the parties were stipulating for a period of contractual

prescription for the conditional extinguishment of the mineral servitude

created, then Act 315 of 1940 is applicable and constitutional.' Id., at 942, 132

So.2d, at 854—855.

13 Recognizing that 'the interpretation of this reservation is for the United States

courts, and not for us in this proceeding,' id., at 930, 132 So.2d, at 850, that

court nevertheless hinted broadly that it viewed the Leiter reservation as one

establishing a reservation for an indefinite period of time, and thus one subject

to retroactive application of Act 315. See id., at 936, 938, 132 So.2d, at 852,

853.

14 The parties then returned to federal court. The District Court held that the

mineral reservation in the Leiter deed created a mineral servitude for a fixed

period and that, under the terms of the Louisiana Supreme Court's declaratory

ruling, as a matter of state law the reservation was not affected by Act 315. 204

F.Supp. 560 (ED La. 1962). The Court of Appeals reversed. It rejected the

Government's contention that federal law controlled the rights of the United

States under the reservation, and held, instead, that those rights were to be

governed by Louisiana law. The Court of Appeals believed that the Louisiana

Supreme Court had viewed Leiter's servitude as 'one of indefinite duration' and

it agreed with that view. Under Louisiana law, therefore, the reservation

'provide(d) for a contractual prescription for the conditional extinguishment of

the mineral servitude which was rendered inoperative by (Act 315).' 329 F.2d,

at 93. As to the Government's contention that the Act, as so construed,

unconstitutionally impaired the obligation of contract, the Court of Appeals

concluded that the discussion of that matter in its prior decision in Nebo Oil,

supra, and in the Louisiana Supreme Court's Leiter opinion, made it'unnecessary further to labor' the point. Id., at 94. Judge Gewin dissented. On

being advised by the parties that the case had been settled, we granted

certiorari, vacated the judgment of the Court of Appeals, and remanded the


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II

cause to the District Court with instructions to dismiss the complaint as moot.

381 U.S. 413, 85 S.Ct. 1575, 14 L.Ed.2d 692 (1965).

15 The essential premise of the Court of Appeals' decision in the Leiter Minerals

case was that state law governs the interpretation of a federal land acquisitionauthorized by the Migratory Bird Conservation Act. The Court of Appeals did

not set forth in detail the basis for this premise,8 but that court's opinion seems

to say that state law governs this land acquisition because at bottom, it is an

'ordinary' 'local' land transaction to which the United States happens to be a

party. The suggestion is that this Court's decision in Erie R. Co. v. Tompkins,

304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938), compels application of state

law here because the Rules of Decisions Act, 28 U.S.C. § 1652,9 requires

application of state law in the absence of an explicit congressional command tothe contrary. We disagree.

16 The federal jurisdictional grant over suits brought by the United States is not in

itself a mandate for applying federal law in all circumstances. This principle

follows from Erie itself, where, although the federal courts had jurisdiction over

diversity cases, we held that the federal courts did not possess the power to

develop a concomitant body of general federal law. Mishkin, The Variousness

of 'Federal Law': Competence and Discretion in the Choice of National andState Rules for Decision, 105 U.Pa.L.Rev. 797, 799 (1957). It is true, too, that

'(t)he great body of law in this country which controls acquisition, transmission,

and transfer of property, and defines the rights of its owners in relation to the

state or to private parties, is found in the statutes and decisions of the state.'

Davies Warehouse Co. v. Bowles, 321 U.S. 144, 155, 64 S.Ct. 474, 480, 88

L.Ed. 635 (1944). Even when federal general law was in its heyday, an

exception was carved out for local laws of real property. Swift v. Tyson, 16 Pet.

1, 18, 10 L.Ed. 865 (1842); see Kuhn v. Fairmont Coal Co., 215 U.S. 349, 360,30 S.Ct. 140, 143, 54 L.Ed. 228 (1910). Indeed, before Erie R. Co. v.

Tompkins, supra, this Court's opinions left open the possibility that even 'the

United States, while protected by the Constitution from discriminatory state

action, and perhaps certain other special forms of state control, was nevertheless

governed generally in its ordinary proprietary relations by state law.' Hart, The

Relations Between State and Federal Law, 54 Col.L.Rev. 489, 533 (1954). See,

e.g., Mason v. United States, 260 U.S. 545, 558, 43 S.Ct. 200, 203, 67 L.Ed.

396 (1923).

17 Despite this arguable basis for its reasoning the Court of Appeals in the instant

case seems not to have recognized that this land acquisition, like that in Leiter


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Minerals, is one arising from and bearing heavily upon a federal regulatory

program. Here, the choice-of-law task is a federal task for federal courts, as

defined by Clearfield Trust Co. v. United States, 318 U.S. 363, 63 S.Ct. 573, 87

L.Ed. 838 (1943). Since Erie, and as a corollary of that decision, we have

consistently acted on the assumption that dealings which may be 'ordinary' or

'local' as between private citizens raise serious questions of national sovereignty

when they arise in the context of a specific constitutional or statutory provision; particularly is this so when transactions undertaken by the Federal Government

are involved, as in this case10 In such cases, the Constitution or Acts of

Congress 'require' otherwise than that state law govern of its own force.

18 There will often be no specific federal legislation governing a particular

transaction to which the United States is a party; here, for example, no

provision of the Migratory Bird Conservation Act guides us to choose state or

federal law in interpreting federal land acquisition agreements under the Act.But silence on that score in federal legislation is no reason for limiting the

reach of federal law, as the Court of Appeals thought in Leiter Minerals. To the

contrary, the inevitable incompleteness presented by all legislation means that

interstitial federal lawmaking is a basic responsibility of the federal courts. 'At

the very least, effective Constitutionalism requires recognition of power in the

federal courts to declare, as a matter of common law or 'judicial legislation,'

rules which may be necessary to fill in interstitially or otherwise effectuate the

statutory patterns enacted in the large by Congress. In other words, it mustmean recognition of federal judicial competence to declare the governing law in

an area comprising issues substantially related to an established program of

government operation.' Mishkin, 105 U.Pa.L.Rev., at 800.

19 This, then, is what has aptly been described as the 'first' of the two holdings of

Clearfield Trust Co. v. United States, supra—that the right of the United States

to seek legal redress for duly authorized proprietary transactions 'is a federal

right, so that the courts of the United States may formulate a rule of decision.'Friendly, In Praise of Erie—And of the New Federal Common Law, 39

N.Y.U.L.Rev. 383, 410 (1964). At least this first step of the Clearfield analysis

is applicable here. We deal with the interpretation of a land acquisition

agreement (a) explicitly authorized, though not precisely governed, by the

Migratory Bird Conservation Act and (b) to which the United States itself is a

party. Cf. Bank of America National Trust & Savings Ass'n v. Parnell, 352 U.S.

29, 33, 77 S.Ct. 119, 121, 1 L.Ed.2d 93 (1956). As in Clearfield and its

progeny, '(t)he duties imposed upon the United States and the rights acquired by it . . . find their roots in the same federal sources. . . . In absence of an

applicable Act of Congress it is for the federal courts to fashion the governing

rule of law according to their own standards.' 318 U.S., at 366—367, 63 S.Ct.,


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III

at 575; United States v. Allegheny County, 322 U.S. 174, 183, 64 S.Ct. 908,

913, 88 L.Ed. 1209 (1944); United States v. Standard Oil Co., 332 U.S. 301,

305, 67 S.Ct. 1604, 1606, 91 L.Ed. 2067 (1947); Board of County Comm'rs v.

United States, 308 U.S. 343, 349—350, 60 S.Ct. 285, 287—288, 84 L.Ed. 313

(1939).11

20 The next step in our analysis is to determine whether the 1937 and 1939 land

acquisition agreements in issue should be interpreted according to 'borrowed'

state law—Act 315 of 1940. The availability of this choice was explicitly

recognized in Clearfield Trust itself 12 and fully elaborated some years later in

United States v. Standard Oil Co., supra. There we acknowledged that 'in many

situations, and apart from any supposed influence of the Erie decision, rights,

interests and legal relations of the United States are determined by applicationof state law, where Congress has not acted specifically.' 332 U.S., at 308, 67

S.Ct., at 1608. We went on to observe that whether state law is to be applied is

a question 'of federal policy, affecting not merely the federal judicial

establishment and the groundings of its action, but also the Government's legal

interests and relations, a factor not controlling in the types of cases producing

and governed by the Erie ruling. And the answer to be given necessarily is

dependent upon a variety of considerations always relevant to the nature of the

specific governmental interests and to the effects upon them of applying statelaw.' Id., at 309—310, 67 S.Ct., at 1609. See also De Sylva v. Ballentine, 351

U.S. 570, 580, 76 S.Ct. 974, 979, 100 L.Ed. 1415 (1956); RFC v. Beaver

County, 328 U.S. 204, 66 S.Ct. 992, 90 L.Ed. 1172 (1946); Board of County

Comm'rs v. United States, 308 U.S., at 351—352, 30 S.Ct., at 288—289; Royal

Indemnity Co. v. United States, 313 U.S. 289, 296, 61 S.Ct. 995, 997, 85 L.Ed.

1361 (1941); United States v. Yazell, 382 U.S. 341, 356—357, 86 S.Ct. 500,

508—509, 15 L.Ed.2d 404 (1966); cf. United States v. Mitchell, 403 U.S. 190,

91 S.Ct. 1763, 29 L.Ed.2d 406 (1971).

21 The Government urges us to decide, virtually without qualification, that land

acquisition agreements of the United States should be governed by federally

created federal law. Cf. United States v. 93.970 Acres, 360 U.S. 328, 79 S.Ct.

1193, 3 L.Ed.2d 1275 (1959). We find it unnecessary to resolve this case on

such broad terms. For even if it be assumed that the established body of state

property law should generally govern federal land acquisitions, we are

persuaded that the particular rule of law before us today—Louisiana's Act 315of 1940, as retroactively applied—may not. The 'reasons which may make state

law at times the appropriate federal rule are singularly inappropriate here.'

Clearfield Trust, 318 U.S., at 367, 63 S.Ct., at 575.13


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22 The Court in the past has been careful to state that, even assuming in general

terms the appropriateness of 'borrowing' state law, specific aberrant or hostile

state rules do not provide appropriate standards for federal law. In De Sylva v.

Ballentine, supra, we held that whether an illegitimate child was a 'child' of the

author entitled under the Copyright Act to renew the author's copyright was to

be determined by whether, under state law, the child would be an heir of the

author. But Mr. Justice Harlan's opinion for the Court took pains to caution thatthe Court's holding 'does not mean that a State would be entitled to use the

word 'children' in a way entirely strange to those familiar with its ordinary

usage . . ..' 351 U.S., at 581, 76 S.Ct., at 980. In RFC v. Beaver County, supra,

the issue was whether the definition of 'real property,' owned by the RFC and

authorized by Congress to be subject to state and local taxation, was to be

derived from state law or to be fashioned as an independent body of federal law.

The Court concluded that 'the congressional purpose can best be accomplished

by application of settled state rules as to what constitutes 'real property"—butagain the Court foresaw that its approach would be acceptable only 'so long as

it is plain, as it is here, that the state rules do not effect a discrimination against

the government, or patently run counter to the terms of the Act.' 328 U.S., at

210, 66 S.Ct., at 995. See also U.A.W. v. Hoosier Cardinal Corp., 383 U.S.

696, 706, 86 S.Ct. 1107, 1113, 16 L.Ed.2d 192 (1966).

23 Under Louisiana's Act 315, land acquisitions of the United States,14 explicitly

authorized by the Migratory Bird Conservation Act, are made subject to a ruleof retroactive imprescriptibility, a rule that is plainly hostile to the interests of

the United States. As applied to a consummated land transaction under a

contract which specifically defined conditions for prolonging the vendor's

mineral reservation, retroactive application of Act 315 to the United States

deprives it of bargained-for contractual interests.

24 To permit state abrogation of the explicit terms of a federal land acquisition

would deal a serious blow to the congressional scheme contemplated by theMigratory Bird Conservation Act and indeed all other federal land acquisition

programs. These programs are national in scope. They anticipate acute and

active bargaining by officials of the United States charged with making the best

possible use of limited federal conservation appropriations. Certainty and

finality are indispensable in any land transaction, but they are especially critical

when, as here, the federal officials carrying out the mandate of Congress

irrevocably commit scarce funds.

25 The legislative history of the Migratory Bird Conservation Act confirms the

importance of contractual certainty to the federal land acquisition program it

authorizes. As originally enacted in 1929, the Act provided that land


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acquisitions might include reservations, easements, and rights of way but that

these were to be subject to 'such rules and regulations' as the Secretary of

Agriculture might prescribe 'from time to time.' § 6, 45 Stat. 1223. This

sweeping statement of the Secretary's power to modify contract terms in favor

of the Government had an unsettling effect on potential vendors; in 1935, the

Act was amended to require the Secretary either to include his rules or

regulations in the contract itself or to state in the contract that the reservation or easement would be subject to rules and regulations promulgated 'from time to

time.'15 A Congress solicitous of the interests of private vendors in the certainty

of contract would hardly condone state modification of the contractual terms

specified by the United States itself as vendee, whether or not those terms may

be characterized as 'rules and regulations' within the meaning of the Act.

26 Conceivably, our conclusion might be influenced if Louisiana's Act 315 of

1940, as applied retroactively, served legitimate and important state intereststhe fulfillment of which Congress might have contemplated through application

of state law. But that is not the case. We do not deprecate Louisiana's concern

with facilitating federal land acquisitions by removing uncertainty on the part of

reluctant vendors over the duration of mineral reservations retained by them.

From all appearances, this concern was a significant force behind the

enactment of the 1940 legislation.16 But today we are not asked to consider Act

315 on its face, or as applied to transactions consummated after 1940; we are

concerned with the application of Act 315 to a pair of acquisition agreements in1937 and 1939. And however ligitimate the State's interest in facilitating federal

land acquisitions, that interest has no application to transactions already

completed at the time of the enactment of Act 315: the legislature cannot

'facilitate' transactions already consummated.17

27 The Louisiana Supreme Court has candidly acknowledged two additional

purposes which help to explain retroactive application of Act 315: to clarify the

taxability by the State of mineral interests in the large federal land holdings inLouisiana, otherwise in doubt by virtue of the arcane and fluctuating doctrines

of intergovernmental tax immunity; and to ensure that federal mineral interests

could be subjected to state mineral conservation laws without federal pre-

emption.18 We are not unsympathetic to Louisiana's concern for the

consequences of a continuing, substantial, even if contingent, federal interest in

Louisiana minerals. Congress, however, could scarcely have viewed that

concern as a proper justification for retroactive application of state legislation

which effectively deprives the Government of its bargained-for contractualinterests. Our Federal Union is a complicated organism, but its legal processes

cannot legitimately be simplified through the inviting expedient of special

legislation which has the effect of confiscating interests of the United States.19


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28 Respondents point out that '(o)ne who owns land subject to an outstanding

mineral reservation possesses no vested property interest (under Louisiana law),

inasmuch as 'estates in reversion' are unknown to Louisiana law. Such an owner

of the land possesses only a hope or expectancy to acquire these mineral rights;

and . . . this hope or expectancy is not an object that can be legally sold.' Brief

for Respondents 27, citing, e.g., Hicks v. Clark, 225 La. 133, 72 So.2d 322

(1954). But whether Louisiana recognizes the interests at stake here astransferable interests in real property, as such, has no bearing on our conclusion

that after-the-fact modification of explicit contractual terms would be adverse

to the United States and contrary to the requirements of the Migratory Bird

Conservation Act.

29 It is also of no import that, under Louisiana law as it might be articulated in

1973, the United States acquired from respondents only the reversion to a

mineral interest of indefinite duration, a 'hope' or 'expectancy' revocable at anytime by after-enacted legislation. Respondents place heavy reliance on the

opinion of the Louisiana Supreme Court in Leiter Minerals, where that court

held that a mineral reservation for an indefinite duration was one traditionally

subject to retroactive prescriptive change. But even if this rule of law could

have been anticipated in 1937 and 1939, when the United States agreed to the

mineral reservations in issue here, that the 1937 and 1939 reservations were of

'indefinite' duration could not have been. Indeed, some 20 years later, in 1957,

when Leiter Minerals came to this Court for the first time, we were not in a position to resolve the Government's contention that the Leiter reservation was

one of specific duration. Uncertainty over this question of Louisiana law was

the guiding force behind our remand in hopes of obtaining the view of the

Louisiana Supreme Court. In its advisory opinion, the Louisiana Supreme Court

did not decide whether the Leiter-type reservation was 'indefinite' and subject to

retroactive modification—to the extent that the Federal District Court, in

Louisiana, subsequently concluded that the servitude in the Leiter reservation

was not, under state law, freely revocable. In Leiter Minerals, one Court of Appeals judge dissented on this state law issue, and, with reason, the

Government renews the issue before the Court in this case.

30 Were the terms of the mineral reservations at issue here less detailed and

specific, it might be said that the Government acknowledged and intended to be

bound by unforeseeable changes in state law. But the mineral reservations

before us are flatly inconsistent with the respondents' suggestion that the United

States in fact expected that these reservations would be wholly subject toretroactive modification. Nor, given the absence of any reliable

contemporaneous Louisiana signpost and the absence even today of any final

resolution of the pertinent state law question, can we say that the United States


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IV

ought to have anticipated that its deed contained an empty promise.

Respondents' reliance on the Louisiana Supreme Court's holding in its opinion

in 1961 in Leiter Minerals assumes that a late-crystallizing doctrine of state law

is appropriately applied to modify the wxpectations of the United States

established by the terms of 1937 and 1939 bargains. The argument, however, is

indistinguishable from respondents' defense of Act 315 itself. Years after the

fact, state law may not redefine federal contract terminology 'in a way entirelystrange to those familiar with its ordinary usage . . ..' De Sylva v. Ballentine,

351 U.S., at 581, 76 S.Ct., at 980.

31 In speaking of the choice of law to be applied, the alternatives are plain

although in this case identifying them in fixed categories is somewhat elusive.

One 'choice' would be to apply the law urged on us by respondents, i.e.,Louisiana Act 315 of 1940. In some circumstances, such as those suggested by

RFC v. Beaver County, 328 U.S. 204, 66 S.Ct. 992, 90 L.Ed. 1172 (1946), or

Wallis v. Pan American Petroleum Corp., 384 U.S. 63, 86 S.Ct. 1301, 16

L.Ed.2d 369 (1966),20 state law may be found an acceptable choice, possibly

even when the United States itself is a contracting party. However, in a setting

in which the rights of the United States are at issue in a contract to which it is a

party and 'the issue's outcome bears some relationship to a federal program, no

rule may be applied which would not be wholly in accord with that program.'Mishkin, 105 U.Pa.L.Rev., at 805—806.

32 Since Act 315 is plainly not in accord with the federal program implemented by

the 1937 and 1939 land acquisitions, state law is not a permissible choice here.

The choice of law merges with the constitutional demands of controlling federal

legislation; we turn away from state law by default. Once it is clear that Act

315 has no application here, we need not choose between 'borrowing' some

residual state rule of interpretation or formulating an independent federal'common law' rule; neither rule is the law of Louisiana yet either rule resolves

this dispute in the Government's favor. The contract itself is unequivocal; the

District Court concluded, and it is not disputed here, that by the clear and

explicit terms of the contract reservations, '(respondents') interests in the oil,

gas, sulphur and other minerals terminated . . . no later than July 23, 1947, and

August 30, 1949, unless Act 315 of 1940 has caused the reservations of the

servitudes in favor of (respondents) to be imprescriptible.'

33 We hold that, under settled principles governing the choice of law by federal

courts, Louisiana's Act 315 of 1940 has no application to the mineral

reservations agreed to by the United States and respondents in 1937 and 1939,


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and that, as a result, any contract interests of respondents expired on the dates

identified by the District Court. Accordingly, we reverse the judgment of the

Court of Appeals and remand the case for entry of an order consistent with this

opinion.

34 Reversed and remanded.

35 Mr. Justice STEWART, concurring in the judgment.

36 I cannot agree with the Court that the mineral reservations agreed to by the

United States and the respondents in 1937 and 1939 are governed by some

brooding omnipresence labeled federal common law. It seems clear to me, as a

matter of law, not a matter of 'choice' or 'borrowing,' that when anyone,

including the Federal Government, goes into a State and acquires real property,the nature and extent of the rights created are to be determined, in the absence

of a specifically applicable federal statute, by the law of the State.

37 That was the very premise of the decision in Leiter Minerals, Inc. v. United

States, 352 U.S. 220, 228—230, 77 S.Ct. 287, 292 293, 1 L.Ed.2d 267 (1957),

which remanded the case to the Court of Appeals with instructions to secure an

authoritative construction of the state statute by the state courts, in order

possibly to avoid deciding the federal constitutional issues. Other decisions of this Court lead to the same conclusion. United States v. Yazell, 382 U.S. 341,

352—358, 86 S.Ct. 500, 506—510, 15 L.Ed.2d 404 (1966); United States v.

Burnison, 339 U.S. 87, 89, 70 S.Ct. 503, 504, 94 L.Ed. 675 (1950); Davies

Warehouse Co. v. Bowles, 321 U.S. 144, 155, 64 S.Ct. 474, 480, 88 L.Ed. 635

(1944); Sunderland v. United States, 266 U.S. 226, 232—233, 45 S.Ct. 64, 65,

69 L.Ed. 259 (1924); Mason v. United States, 260 U.S. 545, 557—558, 43

S.Ct. 200, 203, 67 L.Ed. 396 (1923); United States v. Fox, 94 U.S. 315, 320, 24

L.Ed. 192 (1877). Cf. Wallis v. Pan American Petroleum Corp., 384 U.S. 63,

86 S.Ct. 1301, 16 L.Ed.2d 369 (1966).

38 Since I think the Government's property acquisitions here are controlled by

state law, the decisive question for me is whether the retroactive application of

Louisiana Act 315 of 1940 to those acquisitions is constitutional.1 The 1937

deed of purchase and the 1939 condemnation judgment were unequivocal: the

mineral rights were reversed to the former owners of the land for a 10-year

period, after which time if certain conditions regarding exploration and production were not met—the reserved rights were to terminate, and complete

fee title to the land, including the mineral rights, was to become vested in the

United States. The Federal Government bargained for this contingent future


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interest in the minerals; it was clearly agreed to in the conveyances, and was

thus reflected in the consideration paid by the Government to the former

owners.

39 Yet the Court of Appeals held that Louisiana Act 315, which was enacted

subsequent to those conveyances, operated to abrogate the agreed-upon terms

of the mineral reservations by eliminating the Government's future interest.This retroactive application of Act 315, I believe, is a textbook example of a

violation of Art. I, § 10, cl. 1, of the Constitution, which provides that no State

shall pass any law 'impairing the Obligation of Contracts.'2

40 Accordingly, I concur in the judgment of the Court.

41 Mr. Justice REHNQUIST, concurring in the judgment.

42 I agree with my Brother STEWART that the central question presented by this

case is whether Louisiana has the constitutional power to make Act 315

applicable to this transaction, and not whether a judicially created rule of

decision, labeled federal common law, should displace state law. The Migratory

Bird Conservation Act does not establish a federal rule controlling the rights of

the United States under the reservation. Whether Congress could enact such a

provision is a question not now before us. In Clearfield Trust Co. v. UnitedStates, 318 U.S. 363, 366, 63 S.Ct. 573, 574, 87 L.Ed. 838 (1943), this Court

held that federal common law governed the rights and duties of the United

States 'on commercial paper which it issues . . ..' The interest in having those

rights governed by a rule which is uniform across the Nation was the basis of

that decision. But the interest of the Federal Government in having real

property acquisitions that it makes in the States pursuant to a particular federal

program governed by a similarly uniform rule is too tenuous to invoke the

Clearfield principle, especially in light of the consistent statements by this

Court that state law governs real property transactions.

43 What for my Brother STEWART, however, is a 'textbook example' of a

violation of the Obligation of Contracts Clause, is for me something more

difficult. The scope of this clause has been restricted by past decisions of the

Court such as Home Building & Loan Assn. v. Blaisdell, 290 U.S. 398, 54 S.Ct.

231, 78 L.Ed. 413 (1934), in which a Minnesota statute extending the period of

time in which the mortgagor might redeem his equity following foreclosure wasupheld in the face of vigorous arguments that the statute impaired a valid

contract. Were there no simpler ground for disposing of the case, it would be

necessary to resolve this very debatable question.


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The United States brought two separate suits for this purpose under 28 U.S.C. §

1345, which were consolidated by consent pursuant to Fed.Rule Civ.Proc.

42(a).

In Frost-Johnson Lumber Co. v. Salling's Heirs, 150 La. 756, 91 So. 207

(1922), the Louisiana Supreme Court declined to recognize a perpetual 'mineral

estate' in Louisiana lands, transferable independently of the overlying surface

property. Instead, the Louisiana Supreme Court declared that 'oil and gas in

place are not subject to absolute ownership as specific things apart from the soil

of which they form part,' id., at 858, 91 So., at 243, and that sale or reservation

of mineral rights affords no more than a right to go on the land to search for and

reduce to possession all minerals found. 2A. Yiannopoulos, Louisiana Civil

Law Treatise, Property § 99 (1967); H. Daggett, Mineral Rights in Louisiana §

1 (Rev. ed. 1949). See generally Hardy, The Birth of Louisiana Mineral Law,

16 Loyola L.Rev. 299 (1970). Since Frost-Johnson, '(s)ale and reservation of

44 I believe that such another ground is present here, in view of the fact that Act

315 enacted by Louisiana by its terms applies only to transactions in which 'the

United States of America, or any of its subdivisions or agencies' is a party.

While it is argued that Louisiana by other legislation made the same principle

applicable to the state government, this proposition is, as the Court's opinion

points out, by no means demonstrated. And in any event the change in the

period of prescriptibility was not made applicable to nongovernmental grantees.

45 Implicit in the holdings of a number of our cases dealing with state taxation and

regulatory measures applied to the Federal Government is that such measures

must be nondiscriminatory. See, e.g., James v. Dravo Contracting Co., 302 U.S.

134, 58 S.Ct. 208, 82 L.Ed. 155 (1937); New York v. United States, 326 U.S.

572, 66 S.Ct. 310, 90 L.Ed. 326 (1946); RFC v. Beaver County, 328 U.S. 204,

210, 66 S.Ct. 992, 995, 90 L.Ed. 1172 (1946).

46 The doctrine of intergovernmental immunity enunicated in McCulloch v.

Maryland, 4 Wheat. 316, 4 L.Ed. 579 (1819), however it may have evolved

since that decision, requires at least that the United States be immune from

discriminatory treatment by a State which in some manner interferes with the

execution of federal laws. If the State of Pennsylvania could not impose a

nondiscriminatory property tax on property owned by the United States, United

States v. Allegheny County, 322 U.S. 174, 64 S.Ct. 908, 88 L.Ed. 1209 (1944),

a fortiori, the State of Louisiana may not enforce Act 315 against the propertyof the United States involved in this case. I therefore concur in the judgment of

the Court.

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mineral rights have been almost consistently classified as servitudes.'

Yiannopoulos, supra, § 62, at 183; Daggett, supra, § 2.

'Prescription' or expiration of the remedy to protect a mineral servitude will

occur at the end of 10 years from the date of creation, if the servitude is not

maintained during that time in accordance with complex requirements for use or

acknowledgment. The parties may not extend the 10-year period of prescription by advance agreement, see Art. 3460, La.Civ.Code Ann.; Hightower v.

Maritzky, 194 La. 998, 1006—1007, 195 So. 518, 520—521 (1940). However,

the parties are not barred from agreeing to a period of contractual prescription

shorter than 10 years. Nabors, The Louisiana Mineral Servitude and Royalty

Doctrines: A Report to the Mineral Law Committee of the Louisiana State Law

Institute, 25 Tul.L.Rev. 155, 176—177 (1951).

Louisiana law distinguishes between prescription and 'peremption.' The

Louisiana Supreme Court has explained the distinction in the following terms:

"When a statute creates a right of action, and stipulates the delay within which

that right is to be executed, the delay thus fixed is not, properly speaking, one

of prescription, but it is one of peremption. Statutes of prescription simply bar

the remedy. Statutes of peremption destroy the cause of action itself. That is to

say, after the limit of time expires the cause of action no longer exists; it is

lost." Brister v. Wray Dickinson Co., Inc., 183 La. 562, 565, 164 So. 415, 416

(1935), cited in United States v. Nebo Oil Co., 90 F.Supp. 73, 80 (WD

La.1950). Because statutes of prescription are considered 'remedial' the

Louisiana courts have generally held that such statutes are applicable to causes

of action which arose before the statute was enacted. United States v. Nebo Oil

Co., supra, at 81—82, and cases cited.

The Court of Appeals also emphasized that officials of the Department of

Agriculture had represented to the Government's vendor that 'the prescriptive

provisions of the Louisiana Civil Code would not apply to lands sold to the

United States for national forest purposes.' 190 F.2d 1003, 1005. The Court of Appeals noted that the price paid by the Government did not reflect the value

of any mineral rights and that the vendor would not have agreed to the land sale

absent the Government's representation that Louisiana prescriptive law would

not apply. Id., at 1006.

The initial duration of the reservation was 10 years. If mineral operations took

place for 'an average of at least 50 days per year' during the final three years of

the specified term, the servitude would be extended for an additional five-year period, but only with respect to 'an area of twenty-five acres of land' around

each well or mine producing or being drilled at the 'time of first extension.'

Additional five-year extensions could be obtained 'from time to time' to permit

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completion of active drilling operations.

Leiter Minerals, Inc. v. United States, 224 F.2d 381 (CA5 1955), aff'g, 127

F.Supp. 439 (ED La.1954).

The 1957 remand was in effect a remand with instructions to abstain. It

contemplated state court elucidation of various uncertainties surrounding Act315, before this Court would attempt 'to decide their relation to the issues in the

case.' We do not, therefore, understand the respondents' suggestion, echoed by

Mr. Justice STEWART, that the 1957 remand foreshadowed final resolution of

the Leiter Minerals controversy through state law.

Indeed, the Court's opinion stated that '(i)t need hardly be added that the state

courts . . . can decide definitively only questions of state law that are not subject

to overriding federal law.' 352 U.S. 220, 229—230, 77 S.Ct. 287, 293, 1

L.Ed.2d 267.

In Leiter Minerals, the Court of Appeals stated that, although 'Congress could

make federal law applicable, . . . it had no intention to do so when it merely

authorized the contract by which the United States acquired the (Leiter)

property.' The Court of Appeals expressed the view that '(s)tate law must

govern in the absence of a federal statute,' and in support of its view it cited

Swift v. Tyson, 16 Pet. 1, 18, 10 L.Ed. 865 (1842). Later in its opinion, the

Court of Appeals stated that 'since the United States had the right to invokefederal jurisdiction (28 U.S.C. § 1345), the ultimate responsibility for the

interpretation of the reservation rests upon the federal courts. That

interpretation, however, must be in accordance with State law . . ..' 329 F.2d 85,

90, 91. From these statements, it appears that the Court of Appeals considered

that the interpretation of the Leiter agreement was governed by state law

(applied of its own force), with the role of the federal courts confined to

interpretation of state law 'in accordance with State law' as laid down by the

highest courts of the State. Possibly, though, the Court of Appeals thought thatthe choice of applicable law was itself a question of federal law ('ultimate

responsibility . . . rests upon the federal courts . . .') but that in the general

context of this case, involving real property, state law should be applied

through 'borrowing.'

'The laws of the several states, except where the Constitution or treaties of the

United States or Acts of Congress otherwise require or provide, shall be

regarded as rules of decision in civil actions in the courts of the United States,in cases where they apply.'

This is not a case where the United States seeks to oust state substantive law on

the basis of 'an amorphous doctrine of national sovereignty' divorced from any

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specific constitutional or statutory provision and premised solely on the

argument 'that every authorized activity of the United States represents an

exercise of its governmental power,' see United States v. Burnison, 339 U.S. 87,

91 and 92, 70 S.Ct. 503, 505 and 506, 94 L.Ed. 675 (1950); United States v.

Fox, 94 U.S. 315, 24 L.Ed. 192 (1877). Burnison and Fox stand at the opposite

end of the spectrum from cases where Congress explicitly displaces state law in

the course of exercising clear constitutional regulatory power over a particular subject matter. See, e.g., Sunderland v. United States, 266 U.S. 226, 232—233,

45 S.Ct. 64, 65, 69 L.Ed. 259 (1924) (United States may displace Oklahoma

law by imposing restrictions on alienation of Indian property despite the

'general rule . . . that the tenure, transfer, control and disposition of real

property are matters which rest exclusively with the state where the property

lies'). The present case falls between the poles of Burnison and Sunderland.

Here we deal with an unquestionably appropriate and specific exercise of

congressional regulatory power which fails to specify whether or to what extentit contemplates displacement of state law.

United States v. Certain Property, 306 F.2d 439 (CA2 1962), the principal

decision relied on by the Court of Appeals in Leiter Minerals, supra, does not

suggest application of state law, of its own force, to federal land acquisitions.

See the discussion by the author of Certain Property in Friendly, 39

N.Y.U.L.Rev., at 411 n. 133.

'In our choice of the applicable federal rule we have occasionally selected state

law.' 318 U.S., at 367, 63 S.Ct., at 575.

In view of our disposition, we delcine to resolve the continuing uncertainty,

under Louisiana law, over the applicability of Act 315 to the mineral

reservation in issue here. See infra, at 601—602.

In 1938, the Louisiana Legislature passed Act 68 and, later, Act 151. Both

statutes barred prescription of mineral reservations in certain lands conveyed tothe United States. Act 68 applied to land acquired by the United States or by

the State of Louisiana 'for use in the construction, operation or maintenance of

any spillway or floodway' authorized by federal law. Act 151, broad enough in

terms to supersede Act 68, provided that prescription would not run against

mineral or royalty reservations or real estate 'acquired by the United States of

America, the State of Louisiana, or any of its subdivisions . . . for use in any

public work and/or improvement.' See generally Comment, Imprescriptible

Mineral Reservations in Sales of Land to the State and Federal Governments,22 Tul.L.Rev. 496 (1948).

Whether because the 'floodway' and 'public work' qualifications of the 1938

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Acts make them inapplicable to the 1939 condemnation reservation in issue

here, or because the parties' own agreement in 1939 reflects their belief that Act

151 was inapplicable, respondents do not argue that the 1938 legislation is

material to the outcome of this case.

See S.Rep.No.822, 74th Cong., 1st Sess., Report of the Special Committee on

Conservation of Wildlife Resources on S. 3006, pp. 2—3 (1935):

'The Migratory Bird Conservation Act of 1929 established the Federal policy

for the acquisition of areas for migratory waterfowl refuges. Under the

provisions of that act, the Secretary of Agriculture was authorized when

purchasing property for waterfowl refuges, to make certain reservations to be

retained by the vendors of the property, but these reservations were subjected to

regulations of the Secretary of Agriculture which might be made 'from time to

time.' The administration of this act has developed some harassments in the

acquisition of desirable waterfowl areas because some owners are not willing to

convey their lands to the Federal Government on the indefinite and uncertain

terms as provided in regulations made 'from time to time.'

'Obviously they may well be justified in their view, and, just as obviously, the

Government may reasonable be secured in its interests by providing for

enjoyment on the reservations under regulations to be stated in the conveyance

at the time of its execution, leaving the vendor who has made the reservation to

the general requirement of existing law that he will be subject to the rules andregulations of the Secretary of Agriculture governing the general administration

of the area as a migratory bird refuge.

'Accordingly it is proposed to amend section 6 of the act of 1929 so that these

reservations, in the discretion of the Secretary of Agriculture, may be subjected

to regulations to be stated in the instrument of conveyance.'

See the discussion in Leiter Minerals, Inc. v. California Co., 241 La. 915, 932,132 So.2d 845, 848 (1961).

Because we are concerned here with retroactive application of Act 315, there is

likewise no basis for the Court of Appeals' suggestion that Act 315 simply

places Louisiana citizens on the same footing as other States' citizens whose

land is purchased or condemned by the United States.

'There can be no doubt . . . that there were other objects and purposes for the

enactment of Act 315 of 1940 . . ..

'One of the important sources of revenue of the State of Louisiana is the

severance tax which is levied and collected by the state when natural resources

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such as oil and gas are produced and extracted from the land. If the mineral

rights were owned by the federal government in lands which the government

had purchased, the mineral owner's share of the oil and gas produced from

those lands would not be subject to taxation by the State of Louisiana, and the

state would be deprived of large sums in taxes, especially since an immense

area is owned by the federal government in oil-producing sections of this state,

as the very facts of this case disclose.

'Moreover, the State of Louisiana in the exercise of its police power has

authority to protect, conserve, and replenish the natural resources of the state

and to prohibit and prevent their waste. . . . Under this power the Legislature

has adopted laws regulating and controlling the production of oil and gas within

the state. By making mineral rights imprescriptible in lands sold to the

government and retaining these rights in the vendors, Act 315 of 1940 avoided

a possible conflict by the state in the exercise of its police power with thefederal government.' 241 La., at 933—934, 132 So.2d, at 851—852.

In 1958, 18 years after the passage of Act 315, Louisiana enacted legislation

that subjects the State and certain of its subdivisions to the rule of

imprescriptibility. Louisiana Act 278 of 1958, La.Rev.Stat. § 9:5806, subd. B

(8supp.1973). But this belated effort at statutory parity does not eliminate the

adverse effect upon the United States, and upon the Migratory Bird

Conservation Act, of retroactive application of Act 315 of 1940. For one thing,

it is not clear whether the 1958 legislation will be given full retrospective effect

by the Louisiana courts, reaching back to 1937 and earlier. More basic, even

assuming retrospective application of the 1958 statute, the effect of the 1958

statute on Louisiana is not comparable to the effect of the 1940 Act on the

United States. With or without legislation relating to prescription of mineral

interests tied to governmental land acquisitions, Louisiana could plainly apply

its own conservation laws and its own severance tax to any property in which

the State held a contingent or even a present mineral interest. The 1958

legislation did nothing to reduce Louisiana's freedom in this respect. Act 315 of 1940, however as applied retroactively, had the avowed purpose and would

have the clear effect of permitting taxation and conservation regulation of

minerals which, quite possibly, would otherwise fall within the Federal

Government's exclusive domain. However parallel the two statutes in purpose

and in their potential effect on actual mineral right ownership by the respective

sovereigns, it is only Act 315 of 1940 that significantly affects interests of the

United States in intergovernmental immunity.

Wallis is readily distinguishable from the instant case; there the assignability of

an oil and gas lease was in controversy between two private parties. That

presented 'no significant threat to any identifiable federal policy or interest.' 384

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U.S. 63, 68, 86 S.Ct. 1301, 1304, 16 L.Ed.2d 369.

Thus, I do not suggest, as the Court seems to think I do (ante, at 588, n. 7), that

this controversy can necessarily be finally resolved through state law. Rather,

my analysis is wholly consistent with the statement in Leiter Minerals, Inc. v.

United States, 352 U.S. 220, 229—230, 77 S.Ct. 287, 292—293, 1 L.Ed.2d 267

(1957), quoted by the Court today (ante, at 588, n. 7), that state courts 'candecide definitively only questions of state law that are not subject to overriding

federal law.'

This case is a far cry from Home Building & Loan Ass'n v. Blaisdell, 290 U.S.

398, 54 S.Ct. 231, 78 L.Ed. 413 (1934), which upheld, in the face of a

challenge based on the Contract Clause, emergency state legislation enacted to

cope with the extraordinary economic depression existing in 1934. The

retroactive application of Louisiana Act 315 serves no such paramount state

interest. Cf. City of El Paso v. Simmons, 379 U.S. 497, 85 S.Ct. 577, 13

L.Ed.2d 446 (1965).

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Documents

United States v. Little Lake Misere Land Co., 412 U.S. 580 (1973)